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An art dealer owns a painting worth $1,600,000, and this dealer has an expected utility function with u(x) = x0.5. There is a 10% chance
An art dealer owns a painting worth $1,600,000, and this dealer has an expected utility function with u(x) = x0.5. There is a 10% chance that the painting will be damaged and only worth $350,000. What is the most that this dealer would be willing to pay for full insurance? 168,510 166,910 165,849 162,110
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Economics of Managerial Decisions
Authors: Roger Blair, Mark Rush
1st edition
134166167, 978-0134166162, 9780134140773 , 978-0133548235
